US Stocks Fall as Oil Jitters Outweigh Nvidia-Led AI Market Rally
US stocks decline as oil jitters outweigh Nvidia-driven AI market optimism.
US stock markets opened lower on Monday as renewed geopolitical tensions in the Middle East and a sharp rally in crude oil prices overshadowed optimism generated by major artificial intelligence developments from leading technology firms.
The S&P 500 slipped 0.16% to open at 7,567.94, while the Dow Jones Industrial Average fell 0.32%, or more than 160 points, to 50,869.04. The tech-heavy Nasdaq Composite also opened marginally lower, down 0.14% at 26,934.59, before paring losses in early trading as select technology stocks recovered.
Despite the weak start, sentiment in the technology sector improved after Nvidia and Microsoft posted gains following major AI-related announcements made at the GTC Taipei 2026 event. Nvidia rose more than 4% to $219, while Microsoft climbed 2.25% to $461.59, helping stabilize Nasdaq performance shortly after the opening bell.
Also Read: Wall Street Hits New Record Despite Iran Uncertainty; Dow Surges as Bond Markets Stabilize
Investor attention remained focused on Nvidia CEO Jensen Huang’s keynote presentation, which highlighted a new collaboration with Microsoft aimed at developing next-generation personal computing systems powered by advanced artificial intelligence. The partnership reportedly includes Nvidia’s latest “superchip,” designed to enhance agentic AI capabilities within a modified version of Microsoft’s Windows operating system.
However, broader market sentiment remained under pressure due to escalating geopolitical concerns. Reports that Iran has halted communication with the United States following Israel’s military activity in Lebanon contributed to renewed uncertainty in global markets, driving a risk-off mood among investors.
Energy markets added further pressure, with crude oil prices surging sharply. Brent crude climbed nearly 5% to hover around $96 per barrel, while West Texas Intermediate rose around 6% to trade near $92.56 per barrel. The spike in oil prices heightened inflation concerns and weighed on equities tied to consumer and industrial sectors.
Analysts noted that while AI-driven optimism continues to support technology stocks, volatility is likely to persist as geopolitical developments and energy price fluctuations increasingly dominate market direction in the short term.
Also Read: S&P 500, Nasdaq Decline After Strong Inflation Data And Rising Oil Prices
